Services

Collateral Management

Financial constraints owing to the lack of liquidity are a major challenge in unlocking the potential of the agriculture sector in emerging economies. This not only limits the farmer’s ability to compete but also exposes the vulnerability of agriculture to sudden and dramatic changes in food prices. StarAgri is committed to addressing these constraints by going beyond conventional measures. For example, Warehouse Receipts financing will improve the availability of secure, low-cost credit by directly easing collateral constraints whilst enhancing the risk profile of farmers. We aim to foster improvements in output markets to help farmers realize higher incomes.

With the help of India’s leading financial institutions and banks, StarAgri currently holds commodities worth INR 75 billion across 200 collateral management locations. We leverage our knowledge of local conditions and buyers combined with accurate data systems and processes to execute loans with near zero default rates. We reduce operating risk by ensuring safekeeping of commodities held as collateral with stringent inspection, verification, monitoring and control measures for secure traceability across the supply chain.